In world first, Australian city regulates UberX before Uber launch

Canberra will be the first city in Australia to introduce regulation for UberX, officially making the service and other ridesharing services legal.

The capital city of the Australian Capital Territory (ACT) will see safety-based ridesharing regulations come into place starting Oct. 30 as Uber is introduced to the market, with more permanent legislation in the following months. The move will make Canberra the first capital city in the world to introduce regulation before Uber has even entered the market, according to Uber.

The ACT Government's chief minister Andrew Barr announced Wednesday a range of measures to create a transport infrastructure that is in line with what consumers are demanding. The new regulations will be introduced in two stages, the first will be enhanced safety measures and fee reductions for taxi drivers, while the second stage, once legislation is passed, will require UberX drivers to have appropriate insurance.

"Today is a really important day for consumers for better transport services in Canberra. What we are announcing that Canberra will become the first city in Australia, and the first capital city in the world to regulate ridesharing services," Barr said at a press conference in Australia's capital. "Our strong desire is to put consumers first."

UberX is set to be legal in Canberra.

Image: Mashable

According the the Canberra Times, the taxi industry will see major concessions as a result of the changes to regulation including a drop in license fees by 2017 to A$5,000 annually. Hire car license fees will drop to $100, from the current amount of $4,600 while Uber drivers will have to pay $50 for accreditation and an annual license fee of A$100 a year.

"This will improve travel options for Canberrans, reduce fares for the community through competition and drive further innovation in the demand responsive transport industry," Barr told Mashable in a statement via email. "The disruptive technology of ride sharing apps will provide the community with a new and innovative way of accessing transport.

"Instead of sticking our heads in the sand and trying to ban disruptive technologies such as ridesharing apps, the ACT Government has provided a regulated, legal environment in which consumers can benefit from that technological innovation."

Like taxi drivers, Uber drivers will be required to undergo criminal background and driving history checks, along with vehicle safety inspections. Uber drivers will only be allowed to take bookings, while taxis will be able to pick customers up from ranks and at the side of the road. Once the second set of regulations are in place, they will be able to accept cash if they are fitted with a security camera.

"Chief Minister Barr and the ACT Government have shown true leadership in their progressive approach to bringing a safe, affordable and reliable point-to-point transport alternative to Canberra through their transparent review process and open and constructive dialogue," Uber said in a blog post.

"The ACT Government has not only answered the demands from thousands of Canberrans for economic opportunities and more reliable and affordable transport, but, through their decision, they have also recognised the rights of all Australians to choose how they move around their cities."

Shane Rattenbury, the minister assisting on transport reform, said in a statement these changes are a great benefit to the community, environment and economy.

"Public transport is an integral part of any city. These reforms are a win for Canberrans and those travelling to the Territory, improving access to diverse transport options and competitive pricing," Rattenbury said. "Taxis and other demand-responsive transport options are important for accessibility and social equity, and are often relied on by those with special transport needs."

Other cities in Australia appear to be stepping away from innovation and regulation in the ridesharing industry. On Sept. 30, the New South Wales state government will enforce suspension notices it has given to 40 UberX drivers in Sydney.

"If drivers continue to offer illegal ride-sharing services -– they will continue to risk registration suspensions and fines," Roads and Maritime Director of Safety and Compliance Peter Wells said in a statement.

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